Will Global Rate Shifts Come to the Treasury Market?

Adding to the market fretting is the IMF cutting its global growth forecast to the lowest level since the financial crisis, citing the impact of tariffs and a weak outlook for most developed markets. According to the IMF, the world economy will grow at a 3.3 percent pace, which is 0.2 percent lower versus the initial forecast in January.

In addition, the global volume of trade in goods and services will increase 3.4 percent in 2019, which represents a drop from the 3.8 percent gain last year.  The IMF, however, did mention that recent policy implementations like the U.S. Federal Reserve keeping interest rates steady are positive signs moving forward.

How will this slowing global growth affect bonds overseas, such as in Europe? In this interview with Dana Weeks, Jordan Kotick looks to major bond market trends abroad for what may be next in the U.S. Treasuries market.

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